The National Highway Authority (NHA) has officially revised toll tax rates for the Lahore-Islamabad Motorway (M2), with the new rates taking effect from August 26, 2025, and remaining valid until August 25, 2026.
This revision comes under the Build-Operate-Transfer (BOT) agreement signed with the Frontier Works Organization’s subsidiary, Motorway Operations and Rehabilitation Engineering (Pvt) Ltd.
Why Are the Toll Rates Increasing?
According to the official NHA notification, the toll hike reflects the annual 10% increase mandated in the 2014 concession agreement signed with FWO’s operating company. This agreement requires yearly adjustments starting from the motorway’s second operational year, with the funds dedicated to the operation, rehabilitation, and maintenance of Pakistan’s busiest motorway.
New Toll Tax Schedule for M2 (Lahore to Islamabad)
Here’s the updated breakdown of toll charges by vehicle category:
| Vehicle Type | Toll Rate (One-Way) | Rate Per KM |
|---|---|---|
| Cars, Jeeps, and Taxis (Class 1) | Rs 1,330 | Rs 3.72 |
| Wagons (Class 2) | Rs 2,240 | Rs 6.24 |
| Buses | Rs 3,130 | Rs 8.73 |
| 2-Axle Trucks (Class 4) | Rs 4,460 | Rs 12.45 |
| 3-Axle Trucks (Class 5) | Rs 5,800 | Rs 16.20 |
| Articulated Trucks (Class 6) | Rs 7,460 | Rs 20.83 |
Background of the BOT Agreement
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The BOT model allows private companies to construct, operate, and maintain public infrastructure before transferring it to the government after a specified period.
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In this case, the FWO’s subsidiary operates the M2, and the toll collection supports ongoing rehabilitation, safety improvements, and infrastructure upkeep.
Effective Dates
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New Toll Rates Start: August 26, 2025
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Validity Period: Until August 25, 2026
Motorists are advised to plan their travel budgets accordingly, especially for long-haul commercial trips, which will see the most significant toll increases.